Impact of Foreign Aid on Socio-economic Development in Nigeria

A Study of Enugu State Fadama III Programmes

Abstract

 Global concerns to eradicate poverty and many other indicators of the downside of development have been described as the basic reason for foreign aid intervention. This study essentially seeks to examine the Socio - Economic impact of FADAMA lll programmes in development, challenges confronting the success of foreign aid intervention and more effective approaches that can make foreign aid intervention a success in Enugu State. The study engaged both modernization and dependency theories in advancing understanding on the subject matter .To achieve this, questionnaire were administered to some of the beneficiary groups to appraise the impact of the project on their annual farm output and farm income. T-test was used to test the difference on beneficiaries’ mean farm output and income before and during Fadama III project participation. Findings from this study revealed that foreign aid has contributed to the development of the communities studied. Also that Fadama III project in Enugu State mean annual farm output and annual farm income of the project beneficiaries increased. Furthermore, test of difference on the average annual farm output and farm income of beneficiaries before and during participation in the project in the study area shows a significant increase in their mean annual output and income. However, the project suffered numerous challenges both from service provider and community officers. These challenges range from inadequate capital, untimely disbursement of inputs, and procurement of substandard materials among others. The study therefore recommends timely supply of farm inputs by the project to farmers, prompt payment of counterpart funds by relevant agencies.